OSOOL & BAKHEET Investment Company announces occurrence of a material development for Al-Maather REIT Fund
Thursday, January 23, 2020 at 3:50 PM
Al-Ma’ather REIT Fund announces that it has entered into an agreement to purchase real estate property of Al Nokhba Educational Schools, on 27/05/1441 AH corresponding to 22/01/2020 (subject to obtaining the necessary approvals from the current mortgagee and completing the regulatory procedures). The acquisition value is SAR 31,000,000 (thirty-one million Saudi riyals), and the transaction will be funded through sharia complied credit facility agreement.
The property is located in the city of Unaizah, in Al-Fahd neighborhood, near the intersection of Sheikh Muhammad Bin Uthaimin Road with Prince Sultan bin Abdulaziz Street, and the building area is approximately 10,522.17 square meters built on a land area of approximately 6,694 square meters, and the property seller is “Creative Knowledge Company for Educational Purposes”– a non-related party.
The seller intends to rent the property with a value of SAR 2,635,000 (two million six hundred and thirty five thousand Saudi riyals) annually, and for a period of fifteen years binding for the two parties starting from the date of transferring the property to the fund, and the tenant will provide rental guarantees backed by three years promissory notes and renewed annually to the end of a period Contract
The Impact Caused by the Event:
The impact of this this event expected to be positive after transferring property ownership to the Fund, by increasing net revenue after deducting fund fees, and expanding weighted average lease expiry – WALE.